VinaCapital residential sales update

10 December 2010For immediate release

VinaCapital Group

Update on residential project sales and marketing

Ho Chi Minh City – VinaCapital Group, a leading asset management, investment banking and real estate firm focused on Vietnam, announces today the results of sales and marketing of residential properties during the second half of 2010.

During the last six months, a total of 481 sales contracts and reservations were recorded at projects in Danang, Nha Trang and Ho Chi Minh City, representing total contracts and reservations worth over USD58 million. This follows the USD116 million in sales and reservations recorded during the financial year ended 30 June 2010.

As reported in our last sales update, all VinaCapital-managed residential real estate assets are now marketed under the Vinaliving brand, Vietnam’s first tailored living and lifestyle brand.

My Gia Township, Nha Trang

Vinaliving launched Phase 1 of its new township in the central coastal city of Nha Trang in late November 2010. Phase 1, comprising 276 lots ranging in size from 100-300sq.m, now has 200 completed presale contracts, with 36 reservations. Phase 2 was on 4 December, with an additional 150 lots. Ninety lots have sold, with deposits taken. The My Gia Township project comprises over 150 hectares and features freehold villa and townhouse plots alongside schools, a hospital and shopping facilities, all within 10 minutes of the Nha Trang coastal strip, which features the VNL-owned Sheraton Nha Trang Hotel and Spa.

The Ocean Villas at Danang Beach Resort

The Ocean Villas, launched in late August 2009, now has 96 completed contracts worth USD71 million. The Ocean Villas form part of the 260-hectare Danang Beach Resort near the central coastal city of Danang. The centrepiece of the Danang Beach Resort is the Greg Norman-designed Danang Golf Club, in operation since April 2010.

The ‘Norman Estates at Danang Beach Resort’ (Phase 6 of the Danang Beach Resort), comprising 37 villas, will be launched in Q1 2011 by Greg Norman. A display villa and a private member club are under construction. Initial marketing of the USD41 million Norman Estates project has been very encouraging.

The Cham Condominiums at Danang Beach Resort

Vinaliving launched this mid-rise condominium project at Danang Beach Resort in February 2010. The three-block complex is situated among the Ocean Villas and offers magnificent ocean views. Presales were strong, allowing construction of the first block to start in March 2010, along with construction of a central management facility building. The first block of 41 units is nearing roof level, with 12 contracts and four reservations to date.

The Azura Apartments at World Trade Center Danang

The first phase of the riverfront parkland refurbishment programme was approved by the Danang municipal government in early December, providing an opportune time for Vinaliving to launch Phase 2 of the Azura Apartments, with changes made to the display centre following buyer feedback. With construction now well several storeys above street level, sales activity has picked up, to the tune of USD 7.5 million in recorded sales. The onsite activity has increased interest in the 24,000sq.m Phase 1 retail centre that is a key component of the WTC Danang project, due to start in Q2 2011.

The Garland, Ho Chi Minh City

Following its successful launch in 2009, The Garland project is nearing completion, with contracts for all but five of the 53 villas. The average sales price of USD1,150/sq.m for bare shell villa construction has set a new benchmark in this area of District 9, suburban Ho Chi Minh City. VinaCapital has signed a contract to divest the condominium site for USD350/sq.m of land area. The Garland was the first Vinaliving-branded product and was very well received by the market. VinaCapital is actively sourcing sites in suburban Ho Chi Minh City for similar projects.

Dai Phuoc Lotus Township, Dong Nai Province

The 200ha Dai Phuoc Lotus island township project is now well underway, with a five-unit display centre due to open in March 2011, along with a ferry terminal that will allow arrival by boat. Phase 4 comprising 332 villas was launched in mid-November 2011, with 109 sales contracts signed and a further 17 reservations, for total revenue of USD26.5 million. The Vinaliving brand has helped generate premium prices in excess of USD500,000 for non-waterfront five-bedroom villas.

Commenting on the residential sales results over the second half of 2010, David Henry, Managing Director of VinaCapital’s real estate division, said: “We are very pleased with the performance of our current projects, and are confident that the five Vinaliving projects launched in the second half of 2010 will see continued success in 2011.

“Demand continues to be strongest in the mid-range market addressing Vietnam’s rising middle class. Vietnam’s GDP growth rate anticipated at almost seven percent in 2010 is due to the strength of the domestic economy, with rising incomes driving the growth of the real estate market.”

The real estate assets described herein are owned by VinaLand Limited (VNL.L) and the VinaCapital Vietnam Opportunity Fund (VOF.L), two AIM-traded closed-end funds managed by VinaCapital Investment Management Ltd. VNL and VOF have invested in a 75/25 percent ratio, respectively, in all the residential development projects mentioned above except The Garland, which is wholly-owned by VNL.

Forward-looking statements:This news release contains statements that constitute forward-looking statements that include but are not limited to statements regarding the expected income generated from residential real estate sales of both built and unbuilt properties owned by funds managed by VinaCapital Group (“the Company”). Undue reliance should not be placed on forward-looking statements. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements. These risks and uncertainties include but are not limited to construction risks and delays, and unforeseen changes to general economic and business conditions. Forward-looking statements are based on the estimates and opinions of the Company's management at the time the statements are made. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law.

Notes to Editors:VinaCapital Group is a leading asset management, investment banking and real estate development firm with unrivalled experience in the Vietnam market. VinaCapital Group was founded in 2003 and has grown from a single USD10 million fund to a diversified investment firm with over USD1.7 billion in assets under management as of October 2010.

VinaCapital manages three closed-end funds trading on the AIM Market of the London Stock Exchange. These are: VinaCapital Vietnam Opportunity Fund (VOF); VinaLand Limited (VNL); and Vietnam Infrastructure Limited (VNI). VinaCapital also co-manages the DFJ VinaCapital technology venture capital fund with Draper Fisher Jurvetson. More information is available at www.vinacapital.com.